The Federation Account Allocation Committee (FAAC) has approved the transfer of N11.5bn from the 0.5 per cent Stabilisation Fund to finance the operations of its sub-committees working on preparations for the 2026 national budget framework, according to official documents.
The document on the Stabilisation Fund account as of January 2026 showed that the withdrawal was authorised by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
According to the document obtained by The PUNCH, N11,500,000,000.01 was withdrawn from the account on January 28, 2026, specifically to fund FAAC sub-committees tasked with developing proposals for the 2026 fiscal programme.
“The transfer represents the amount approved by HMF/CME in favour of various sub-committees of FAAC for the 2026 proposed budget,” the document stated.
The withdrawal formed part of several transactions involving allocations, deductions and statutory transfers recorded in the account between November 2025 and February 2026.
Before the latest deduction, the account had a cumulative balance of N61.11bn, after earlier withdrawals including N7.89bn approved for the operations of the National Economic Council Secretariat for the 2025 fiscal year.
Following the N11.5bn withdrawal, the balance in the Stabilisation Fund temporarily dropped to N49.61bn. However, subsequent inflows and adjustments — including monthly allocations and refunds linked to the 13 per cent derivation index for Bayelsa State — later increased the balance.
By February 20, 2026, the account recorded a closing balance of N54.27bn, according to the statement.
The development comes amid preparations for the N58.18tn 2026 Appropriation Bill presented by Bola Tinubu to a joint session of the National Assembly of Nigeria in December 2025.
The proposal, titled “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” outlines the administration’s third full-year spending plan since Tinubu assumed office in May 2023.
The fiscal framework is based on key macroeconomic assumptions, including an oil benchmark of about $64.85 per barrel, an exchange rate projection of roughly N1,400 to the dollar, and improved revenue generation from both oil and non-oil sources.
Following its presentation, the budget passed second reading in both chambers of the National Assembly and was referred to various standing committees for detailed scrutiny.
This phase marks the start of the budget defence process, where ministries, departments and agencies appear before relevant committees to justify their proposed allocations.
Since the beginning of 2026, several government agencies have appeared before Senate and House committees to defend their spending plans and explain projects captured in their budgets.
During these sessions, lawmakers examine revenue projections, question expenditure proposals and request clarifications on ongoing and proposed projects.
After the defence stage, reports from the various committees will be compiled by the appropriation committees of both chambers before being presented for consideration and passage by the Senate and the House of Representatives.
The Senate has scheduled March 17, 2026, as the tentative date for final consideration and passage of the budget before it is transmitted to the President for assent.
The account statement also highlighted other transactions within the period, including deductions for transfers to the Nigerian Sovereign Investment Authority and payments connected to a forensic audit of the defunct Nigerian National Petroleum Corporation covering the period from 2015 to 2023.
The Stabilisation Fund is part of the broader Federation Account structure that pools revenues generated by the Federal Government, including oil and gas earnings, before they are shared among the federal, state and local governments through FAAC.
The fund is designed to provide fiscal buffers and support specific government obligations, particularly during periods of revenue volatility.
Fiscal experts say the deployment of the fund to support FAAC sub-committees highlights the level of coordination required among federal and sub-national governments in shaping national budget plans.
The FAAC sub-committees typically handle critical components of the fiscal framework, including revenue projections, expenditure planning, oil price benchmarks and macroeconomic assumptions that ultimately shape the national budget and revenue distribution among the three tiers of government.
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